Term insurance plan benefits: Enjoy monthly income, tax rebate - Check these details
Term insurance is one of the best options among a plethora of life insurance plans. There are plans offering insurance worth over Rs 1 crore for up to 25 years on a premium of Rs 10,000. The good thing about term plan is that it is a flexible plan. You can run it the way you want and also earn some monthly income. Here's all you need to know
1. Term plan benefits
The term plan provided financial support to the family on the death of the insured. (Pixabay)
2. Term plan: Best time to start
Experts suggest that the best time to start term insurance is at the age of 25 to 30 years. This is so because the premium increases with age. (Pixabay)
3. Term Insurance Plan: Multiple choice claims
The term plan investor has an option to make a one-time claim or for payments on a regular interval. This needs to be decided at the time of taking the policy. When the policyholder dies, the beneficiary or nominee gets the option of lump sum amount. (Pixabay)
4. Term Insurance plan: Monthly income
On the death of the insured, the claim amount can be availed as monthly instalments with better returns. Under the plan, payment is made to the beneficiary every month with increased instalments adjusted to the inflation. (Pixabay)
5. Term plan: Income tax rebate
Under the Section 80C of Income Tax Act, tax exemption can be claimed up to an investment of Rs 1.5 lakh. The amount received by the nominee on the death of the insured is also tax-free under Section 10 (10D). The insured gets the option of a one-time payment or premium payment at regular intervals. If you make a one-time payment, you can claim tax rebate up to Rs 1.5 lakhs in a year. (Pixabay)
6. Term plan: Caution
Give correct information related to smoking, alcohol or other illness and lifestyle. Insure up to the age of 50 to 60 years, there is also a life-long policy. Also take a medical examination before taking insurance, so that there is no dispute in the claim.
Always read the offer documents carefully before investing in any insurance plan.